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Porter's Five Forces: PVR Cinemas

The document discusses Porter's Five Forces analysis of PVR Cinemas. [1] The threat of new entrants is low as it is difficult for new firms to establish themselves and compete with PVR. [2] The threat of substitutes is medium as alternatives like home theaters have not gained widespread adoption yet, though piracy is a concern. [3] The bargaining power of buyers is low as moviegoers would pay a premium to see films at PVR halls over cheaper alternatives.

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Crazy Mechons
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768 views

Porter's Five Forces: PVR Cinemas

The document discusses Porter's Five Forces analysis of PVR Cinemas. [1] The threat of new entrants is low as it is difficult for new firms to establish themselves and compete with PVR. [2] The threat of substitutes is medium as alternatives like home theaters have not gained widespread adoption yet, though piracy is a concern. [3] The bargaining power of buyers is low as moviegoers would pay a premium to see films at PVR halls over cheaper alternatives.

Uploaded by

Crazy Mechons
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Porter’s Five

Forces
PVR Cinemas
2
3

Threat of
New
Entrants
4

Threat of
New
Entrants

Threat of
Substitutes
5

Threat of
New
Entrants

Threat of
Substitutes

Bargaining
Power Of
Buyers
6

Threat of
New
Entrants

Threat of
Substitutes

Bargaining
Power Of Bargaining
suppliers Power Of
Buyers
7

Threat of
New
Entrants

Rivalry
Among Threat of
Existing Substitutes
Competitors

Bargaining Bargaining
Power Of Power Of
suppliers Buyers
8

1.
Threat of New
Entrants
9

When new competitors enter into an industry


offering the same products or services, a company's
competitive position will be at risk. Therefore,
the threat of new entrants refers to the ability
of new companies to enter into an industry.
10

Threat of New Entrants (pvr)

‼ Threat of New Entrants (Low) — It is difficult for


a new firm to establish and compete with PVR. 
11

2.
Threat of
Substitutes
12

Threat of Substitutes

✖ Threat of Substitute (Medium) — In India, people prefer


watching movies in theatres with friends / family. Renting or
buying a blue-ray and experiencing it on home theatre has not
picked up yet. Piracy is a long term concern for the industry.
Although having a significant impact, but cannot be
considered as a barrier.
13

3.
bargaining power of buyers
14

bargaining power of buyers

‽ Bargaining Power of Buyers (Low) — A typical


movie goes would pay a premium to go to a PVR hall
rather than a cheap one.
15

Bargaining
Power Of
suppliers
16

Bargaining Power Of suppliers


‽ Bargaining Power of Suppliers (Low) — Movie theatres /
Exhibitors enter in a lease or profit sharing contract with the
distributors. Leasing was popular in former times when movies
were distributed on reels. With the advent of digitization, movies
are distributed digitally and the profit sharing model is more
popular where theatres split their net profit with the distributors.
‽ The percentage of distributor’s cut reduces on a week-to-week
basis. Since the profits of a distributor are directly dependent on
exhibitors , a distributor won’t step back in limiting the number of
theatres his movies are shown.
17

Rivalry Among Existing Competitors

our
office
Market Competition (Medium)
18

— Inox and Big Cinemas are


the competitors in the industry
but hard to overtake given the
movie experience offered by
PVR.

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